Seems to be a few questions about Stone's future intentions so...

Seems to be a few questions about Stone's future intentions so thought it might be interesting to have a look at their track record.

When the Stone Group and its affiliates enter a targeted company they normally seek to gain a majority shareholding, get an appropriate amount of directors on the board of the targeted company, then let the company continue to operate as a quasi independent business.

Seems fairly rare for them to takeover a company, unless it is an industry that they have full expertise in (internet services and products, second tier pharmaceuticals), and in fact they do not have a very good track record in businesses outside their core structure (mining appears to be a bit of a disaster for them to date).

In gaining a majority shareholding above 49% in A1 Minerals, Stone has been placed in a position of operational control where they have to actually run the company at a time when they do not have the expertise needed.

Probably the reason Stone went into CRE was to form some sort of relationship between CRE and A1 Minerals, where Stone would be the major shareholder without having to exercise at this time operational control.

With FML now having the major shareholding and operational control of CRE, whatever plans Stone had for CRE have been thwarted and they are obviously rethinking their strategy.

Talk that Stone have lost out. lost face, whatever, are not supported by material and intrinsic gains made by Stone - ASX listed company in A1 Minerals, potential 8% shareholding in FML, along with valuable lessons in how to do business in Australia.

Next time around, do not expect to see Stone making the same mistakes.